USDA's $12B Relief Includes $50M for Dairy Risk Mgmt

President Donald J. Trump alongside U.S. Secretary of Agriculture Brooke L. Rollins, U.S. Secretary of the Treasury Scott Bessent, Senate Agriculture Committee Chairman John Boozman (AR), Senator Deb Fischer (NE), Senator John Hoeven (ND), Representative Austin Scott (GA), and farmers from Arkansas, Iowa, Indiana, Kansas, Louisiana, Pennsylvania, Ohio, and Texas today announced the U.S. Department of Agriculture (USDA) will make $12 billion available in one time bridge payments to American farmers in response to temporary trade market disruptions and increased production costs that are still impacting farmers following four years of disastrous Biden Administration policies that resulted in record high input prices and zero new trade deals. These bridge payments are intended in part to aid farmers until historic investments from the One Big Beautiful Bill Act (OBBBA), including reference prices which are set to increase between 10-21% for major covered commodities such as soybeans, corn, and wheat and will reach eligible farmers on October 1, 2026.

Of the $12 billion provided, up to $11 billion will be used for the Farmer Bridge Assistance (FBA) Program, which provides broad relief to United States row crop farmers who produce Barley, Chickpeas, Corn, Cotton, Lentils, Oats, Peanuts, Peas, Rice, Sorghum, Soybeans, Wheat, Canola, Crambe, Flax, Mustard, Rapeseed, Safflower, Sesame, and Sunflower. FBA will help address market disruptions, elevated input costs, persistent inflation, and market losses from foreign competitors engaging in unfair trade practices that impede exports. The FBA Program applies simple, proportional support to producers using a uniform formula to cover a portion of modeled losses during the 2025 crop year. This national loss average is based on FSA reported planted acres, Economic Research Service cost of production estimates, World Agricultural Supply and Demand Estimates yields and prices and economic modeling.

Farmers who qualify for the FBA Program can expect payments to be released by February 28, 2026. Eligible farmers should ensure their 2025 acreage reporting is factual and accurate by 5pm ET on December 19, 2025. Commodity-specific payment rates will be released by the end of the month. Crop insurance linkage will not be required for the FBA Program; however, USDA strongly urges producers to take advantage of the new OBBBA risk management tools to best protect against price risk and volatility in the future.

The remaining $1 billion of the $12 billion in bridge payments will be reserved for commodities not covered in the FBA Program such as specialty crops and sugar, for example, though details including timelines for those payments are still under development and require additional understanding of market impacts and economic needs.